PAGE 1The future of workJim LinkChief Human Resources OfficerNovember 16, 2016 Randstad Workplace 2025 Report “Embracing Disruption in a Post-Digital Age”The rise of the Agile WorkforcePAGE 2Jim Link, Chief HR Officer, Randstad North Americarandstadusa/workforce360JimLinkHRPAGE 3agenda Trends shaping the future of work Findings from todays agile workers Employer perspectives of an agile model today The workforce and workplace in 2025 Workplace strategies for a post-digital world QuestionsPAGE 4whats shaping the future of work?SOURCE: forbes/sites/jabobmorgan/2013/06/20/five-trends-shaping-the-future-of-workBehaviors shaped by social media entering the enterpriseNew collaborative technologies A shift to “the cloud”Mobility and “connecting to work”Millennials becoming the majority workforcePAGE 5whats shaping the future of work?SOURCE: LiveHire Investor Presentation; McKinsey Time to hire has more than doubled over the last 5 years$4,000 average cost to hire in U.S.36% of employers cant find talent when needed46% of companies are sometimes or frequently understaffed$2.7 trillion impact to global GDP from use of more efficient talent platforms+2X$400036%46%2.7 trillionbiggest change driving future of business Innovation Technology Employee ExpectationsPAGE 6PAGE 7pre-digitalera Devices had just one function Technologies lived alongside each other, but rarely intertwined Life was simple. No one thought of “digital,”“collaboration,” or “globalization” Work took place primarily in the office, and primarily by permanent, full-time workersmid-digitalera The age where digital is becoming accepted into mainstream, and fully immersed into our society Devices are multi-functional, and technologies are increasingly connected Life is complex. Globalization begins to impact everything. Collaboration revolution has begun Work is increasingly being done virtually, and by agile workersWHERE WE ARE TODAYpost-digitalera The layers separating us from physical and virtual interfaces will disappear Life will become simple again. Like pre-digital, nobody will think of “digital” in this era We wont talk of TV vs. online, or mobile vs. desktop We will see a disappearance of the workplace as we know it Collaboration will be king This shift will change everything2017-2025where are we now and where are we going?1990-2010PAGE 8digital technology has changed the rulesOLD WORLDCompany value based on land, capital, raw materialsNEW WORLDCompany value based on knowledge & ability to share information with othersNOT ANYMORESOURCE: LiveHire Investor Presentation; McKinsey whats shaping the future of work?But those people could be anywherePAGE 9PAGE 10whats shaping the future of work?The company of the future is an ever-changing mix of full-time and part-time employees, contractors, retired alumni and even people with no formal connection to youPAGE 11whats shaping the future of work?curator of employee experiencesPAGE 12agility is the new business mantraSOURCE: Accenture Global Visibility and Agility Survey Transform enterprise operating models to be more responsive to the changing patterns of demand and supplyImprove the understanding of the market/end consumerImprove the understanding of competitors, partners, suppliers and regulatorsIncrease scenario planning initiatives to improve agilityExplore a broader range of partnership modelsInvest in risk management capabilitiesInvest in senior leadership development and succession planningInvest in new sources of talentNone of the aboveExecutives believe they must transformenterprise operating models to be more agilePAGE 13say hello to the agile workforce modelWHEN?WHO?HOW?WHERE?Project-basedOvertimeFlextimeJob SharingVaried Working HoursMobileFully ManagedBYODVideo ConferenceCloud-based SystemsFull-timePart-timeOutsourcingFixed TermContractorsFreelanceHome WorkingMobile WorkingHot DeskRented Work HubsCollaboration SpacesMulti-siteSOURCE: blog.tmcs.co.uk/blog/exploring-the-technology-case-for-agile-workingPAGE 14but whats in it for businesses?A LOT PAGE 15but whats in it for businesses?According to the Agile Future Forum“More extensive or innovative agile working practices could generate further value of 3-7% of workforce cost and sales uplift of up to 11%.”SOURCE: Agile Future Forum PAGE 16And its clearly what employees want PAGE 17how do we know?C-suite executives, HR decision-makersmore than 1,500 surveyedacross all sizes, regions and industries and employeesmore than 3,160 surveyedpermanent, temporary, contract, consultant and freelance workers surveyedgroundbreaking insight into the future of agile workSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 18key definitionsAgile (ag·ile;ajl/) Worker (work·er;wrkr/):anyone who works in a temporary, contract, consultant, or freelance capacityAgile (ag·ile;ajl/) Workforce (work·force;wrkfôrs/) Model: the strategic ability to anticipate talent needs, adjust in real-time, and utilize workers from a variety of employment arrangements to accomplish a taskSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 19agile workers todayThat means, by 2019 agileworkers could comprise11% 39%11% of the workforce is made up of agile workers39% of permanent workers say they are likely to consider shifting to a agile worker50%of the workforceSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 20agile workers todayThey choose agile work “I chose to work as a temporary/contractor/ consultant/freelance” (46%) “only option” (28%); “only way to work at company” (18%); position change (9%) primarily for flexibility and control over careerSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 21agile workers todayMore than half, on average, believe agile work than permanent employmentAndnearly four-in-ten(38%) say they feel moresecure working as an agile worker than they do as a permanent employee38%SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 22agile workers today60% of agile workforce has college or advanced degreeRoughly the same percentage (62%) as permanent workforceThey are highly-educated and as educated as permanent workforceThey earn high salaries, nearly on par with permanent workersAverage agile worker salary: $77,180Average permanent salary: $89,820SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 23agile workers todayIn factagile workers feel they have greater career/earning potential than permanent employeesPermanent AgileI believe I have increased my career potential by periodically changing jobs65% 77%I believe I have increased my earning potential by periodically changing jobs67% 79%SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 24agile workers todayPerhaps thats why more agile workers are choosing to continue in short-and-long term capacity:44% of contingent workers plan to work as such for the next 6 months to 3 years in 2016 vs. 32% in 2012nearly half (46%) of agile workers plan to work as such for the foreseeable future or until they retireSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 25how employers are using agile model todayOn average, 30% of companies workforces are made up of agile workers34% of IT organizations workforce is made up of agile workersemployer perspectives today: use of agile workers today84% of IT organizations use some form of agile worker76% of companies currently use some form of agile worker84%76%PAGE 26 SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 27employer perspectives: use of agile workers increasingMore than half (53%) of employers say their use of agile workers has increased over the past few years, while 34% say it has stayed the sameCompanies report the average percentage of specific functions are comprised of agile workers:SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 28employer perspectives: growing commitment to agile model 18%46%86%In 2012, 18% of companies said they were more committed to building an agile workforce modelIn 2016, 46% of companies say they are more committed to building an agile workforce modelBy 2025, 86% of companies say they will be much more committed to building an agile workforce In 4 years, companiescommitment to agile workforce model has increased 155%, 378% increaseby 2025SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 29employer perspectives:top benefits of an agile workforce modelWe are better equipped to meet changing customer demands and needs by having a more agile workforce model to source talent where and when we need themWe are able to hire a wider range of specialized talent and skills to drive innovation and successWe have access to a wider pool of talent, sourcing from local, global, and remote/virtual workersAbility to engage specialized talent that you may not have had access to otherwiseTo apply resources that can deliver the greatest ROI12345SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 30employer perspectives: top attributes of agile workers Employers name top attributes of agile workers at their organization:Skills/knowledge On-demand availability Flexibility with time and work schedules Ability to adapt quickly to the jobWillingness to work hardSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 31employer perspectivesHowever, many organizations struggle with compliance/legal issues and gaining insight into their agile staffing spendWe have difficulty staying up-to-date on legal issues, and operational best practices associated with managing an agile workforceSix-in-ten companies at least somewhat agree: We struggle with having complete insight into the scope of our agile labor costs61% of companies at least somewhat agree: We struggle with having complete insight into the number of agile workers we utilize59% of companies at least somewhat agree: SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 32employer perspectivesMore than a third of organizations dont know enough about theof their external talentSOURCE: CGMAPAGE 33employer perspectives:growing need for support/advice More than half (51%) of companies say specific services to help educate their HR staff about the legal and operational best practices of managing agile labor for their organization would be very/extremely valuableIn 2012, 22% of companies said they would find access to specific information to help determine the right mix of full-time, contingent and contract labor for their organization very/extremely valuableIn 2016, 52% of those companies would find it very/extremely valuableThat is a 136% increase in four yearsSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 34what will the workforce of the post-digital era look like? PAGE 352025 employment landscape: majority of workforce will be agile68% of employers, and 70% of workers agree by 2025, the majority of the workforce will be employed in an agile arrangementIn fact, by the year 2025, the average employer expects 69% of their workforce to be agile talentNearly three-fourths (74%) of employees agree in 2025 there will be more people working as agile employees than there will be working as permanent, traditional employeesSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 362025 employment landscape:agile model needed for the futureNearly nine-in-ten (89%) of employers and(92%) of workers agree by 2025, companies that are adept at managing a mix of traditional and agile talent will be most successful92% of employers agree by 2025, employers will need to be more effective at workforce and talent planningSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 372025 employment landscape:employees believe agile work is the future63% of employees agree working as an agile worker will make them more qualified in the future workplace81% of employees agree they will be more open to working as an agile employee by the year 2025SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 38company/kemp(e)ne/noun1. a place where people go to workcompanyPAGE 39workplace strategies for the post-digital erabecome an expertat maximizing remote/virtual workforcePAGE 40PAGE 41location & flexibility is deeply important to workforce today, and in the future75% of workers say the location of the employer when considering a potential job offer is important/very important100%75%100%97%97% of workers say a potential employer who allows you to work where, and when, you want is attractiveSOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 42a quarter of the workforce is already virtual SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 43but by 2025, employers & workers believe the majority of the workforce will be virtual66% of employers and employees agree by 2025, the majority of their workforce will be remote or virtualAnd, 78% of companies, 85% of workers agree by 2025, at least a quarter of their workforce will be remote or virtualSOURCE: Randstad Workplace 2025 Report - The rise of the Agile Workforcebecome experts at leveraging emerging technologies to engage agile workersPAGE 44PAGE 45consider how to shape collaboration, engagement between traditional & agile talent45Programs offered Agile PermanentTraining/Dev. opps 32% 73%Access to internal resources such as, Intranet, HR system, etc.37% 74%Office supplies and computer equipment 44% 73%Benefits 15% 81%SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 46agility is dependent upon intelligence, must leverage data and insightsOverall, only half of todays employers believe they are doing excellent or very well at leveraging data and talent analytics to drive key HR outcomes49% of companies rated themselves excellent/very good at leveraging data & analytics to build an appropriate mix of agile & traditional workers51% at leveraging data and analytics to more effectively recruit and hire talent51% at leveraging data and analyticsto drive talent efficiencyNearly all (91%)of employers say they will need to better leverage data and analytics to determine the most effective mix between traditional and agile staffing levels by 2025SOURCE: Randstad Workplace 2025 Report - The rise of the Agile WorkforcePAGE 47improvement in collaboration needed for remote or virtual workforceSOURCE: Randstad Workplace 2025 Report - The rise of the Agile Workforcegain alignment